Skip to main content

NEW YORK (TheStreet) -- Newmont Mining (NEM)  gained 1.4% to close at $23.99 Tuesday after raising it copper output estimates for 2014 and 2015.

The mining company said it now expects to produce 120,000 to 125,000 metric tons of copper on a consolidated basis in 2014, up from its previous estimates of 80,000 to 95,000 metric tons. For 2015, Newmont Mining expects to produce 250,000 to 270,000 metric tons, up from its prior estimate of 220,000 to 240,000 metric tons.

The miner raised its copper production estimates after settling a tax dispute with the Indonesian government, allowing it to resume shipments from the company, according to Reuters.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Newmont Mining also raised its consolidated gold production estimates for 2015 to between 5.21 million and 5.71 million ounces, up from 5.1 million ounces to 5.4 million ounces.

TheStreet Ratings team rates NEWMONT MINING CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate NEWMONT MINING CORP (NEM) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • NEM has underperformed the S&P 500 Index, declining 20.67% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Metals & Mining industry average, but is greater than that of the S&P 500. The net income increased by 108.7% when compared to the same quarter one year prior, rising from -$2,059.00 million to $180.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Metals & Mining industry and the overall market on the basis of return on equity, NEWMONT MINING CORP underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • NEM, with its decline in revenue, underperformed when compared the industry average of 0.6%. Since the same quarter one year prior, revenues fell by 12.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • NEM's debt-to-equity ratio of 0.66 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.01 is sturdy.
  • You can view the full analysis from the report here: NEM Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.